Baidu reported RMB 29.6 billion ($4.3 billion) in quarterly revenue on Tuesday, a 5% decline from last year, but saw a return to profitability thanks to a strong 31% annual growth in AI Cloud revenue. Baidu’s non-GAAP net income hit RMB 5.5 billion ($827 million), a 3% yearly increase and a 43% quarterly increase. The Chinese tech giant recorded a net profit of RMB 5.54 billion for the April to June period, a sharp turnaround after its loss of RMB 885 million in the first quarter of 2022. Revenue from Baidu Core decreased 4% in a year, with online marketing revenue down 10% from RMB 19 billion to RMB 17.1 billion, mainly due to Covid-19 lockdowns in certain Chinese cities, according to the company. “Baidu still faces macro uncertainties in the second half of the year,” CEO Robin Li said in the earnings call, adding that the company has seen some opportunities for its mobile ecosystem in e-commerce and short videos. Shares in Baidu slid nearly 7% by the close of trading in the US on Tuesday. [Baidu release]